October 8, 2010
Trading above 99US cents this week, the Australian dollar (A$) is at its highest levels since being floated in 1983 and up almost 22 percent since the 2010 low, with most forecasts now stating parity is a matter of when, not if. While the supply concerns have somewhat shielded the market from the full impact of the A$ rise in 2010, the impact on export competitiveness for the Australian red meat industry if the A$ where to sustain its recent gains, if not go higher, are substantial.
Lamb prices eased back again this week, despite a tightening in numbers. Trade lambs were back 8¢, to 475¢/kg cwt, while heavy lambs moved 1¢ lower to 468¢/kg cwt. With lamb offerings continuing to track below last year levels, prices are still up 9 percent to 16 percent year-on-year.